FTI Touristik, Europe's third-largest tour operator, has announced its filing for insolvency, raising concerns about the future of its subsidiaries in Malta. The Munich-based company cited low booking numbers and financial obligations as reasons for its insolvency, with other affiliated companies expected to follow suit.
FTI Group, the parent company of FTI Touristik, employs 11,000 people globally and is linked to two Maltese subsidiaries: FTIAS Limited and Meeting Point Malta, which collectively employ over 110 people. Additionally, FTI operates the Labranda Riviera Hotel & Spa in Mellieħa. While FTIAS Limited and Labranda have not released official statements, the hotel's website was unreachable as of Tuesday afternoon.
FTIAS Limited is currently negotiating with its parent company to secure jobs, according to industry sources. The company, along with Meeting Point Malta, provides back-office services and destination management for FTI Group, respectively.
Despite recent efforts to attract new investors, FTI cited a significant drop in booking figures and increased demands for advance payments from suppliers, leading to a liquidity crisis. The company is working to ensure planned trips proceed, although new trips might be canceled or partially fulfilled starting Tuesday.
The Maltese tourism sector, however, is expected to absorb the impact. Tony Zahra of the Malta Hotels and Restaurants Association and Chamber of SMEs deputy president Philip Fenech noted FTI's diminished market share in recent years. Meanwhile, other regions like Cyprus and Greece are facing more substantial repercussions from FTI's insolvency.
Germany's Economy Ministry expressed regret over the situation but stated it could not provide financial aid, while the Foreign Ministry pledged consular support if needed. Local sources indicated that FTI's collapse had been anticipated and believed Malta's hospitality sector could handle any resulting disruptions.
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